Measuring the impacts of the CAP in Spain: A CGE model approach

Philippidis, G.. Measuring the impacts of the CAP in Spain: A CGE model approach. Economía Agraria y Recursos Naturales. 2010, Vol. 19(1), p. 99-2010.

The latest round of CAP reforms (Mid Term Review – MTR) introduced a complete decoupling of agricultural support from production decisions, although with opt-out clauses for specific payments in particular sectors (i.e., arable and livestock). Further proposals, under the auspices of the ‘Health Check’, seek to deepen the degree of decoupling, whilst importantly for Spain, offer the option to extend this model of support to the fruit and vegetables sectors. A literature review reveals a dearth of agricultural modelling efforts for Spain, and the non existence of computable general equilibrium (CGE) assessments for Spanish agriculture. Thus, employing a recently developed CGE model for Spain, this paper sets out to quantitatively assess the effects of CAP reform under the MTR and ‘Health Check’ proposals across Spanish agro-food sectors.